Regional, state housing market down in September

Previous concerns that the second half of 2010 would be tough for the Arkansas housing market are now market reality.

Statewide, the number of homes sold during September fell 21.16% to 1,852 when compared to September 2009. For the first nine months of 2010, home sales statewide are down 0.91% compared to the 2009 period.

The number of new and existing homes sold during September 2010 in Crawford, Franklin and Sebastian counties totaled 144, down 17.7% compared to September 2009, according to a report released Oct. 28 by the Arkansas Realtors Association.

Ernie Schimmelman, a Realtor with King Realty Group, said the Fort Smith regional market is definitely a buyer’s market.

“To be precise, 94% of the market in the Crawford and Sebastian Counties is taking more than 7 months to sell. To me, this is a strong indicator that the market continues to cool,” Schimmelman explained.

Arkansas and the Fort Smith region are on track for the third consecutive year of declines in the number of homes sold.

There were 1,948 homes sold during 2009 in Crawford, Franklin and Sebastian counties, down 6.39% from the 2,081 sold in 2008. Area homes sales in 2008 were 12.5% below those of 2007.

Home sales statewide totaled 24,862 during 2009, just 0.95% below 2008 sales. Statewide home sales in 2008 were down 18.16% from 2007.

The number of new and existing homes sold during the January-September 2010 period in Crawford, Franklin and Sebastian counties totaled 1,402, down 4.16% over the same period in 2009. The value of the homes sold in the three counties during the first nine months of 2010 totals $179.046 million, down 1.16% compared to the 2009 period.

Home sales in the first half of 2010 were boosted in the region and around the state by a federal tax credit for certain homebuyers. While there were exceptions, the credit effectively expired by June. The number of new and existing homes sold during the January-June 2010 period in Crawford, Franklin and Sebastian counties totaled 974, up 8.4% over the same period in 2009. By July, the number of homes sold in the area was down compared to the 2009 period.

In the Northwest Arkansas economy, home sales struggled during September 2010, with Benton County sales down 13.1% and Washington County sales down 19.91% for the month. Year-to-date, home sales in Benton and Washington counties are down 5.36% and up 3.17%, respectively.

REAL ESTATE STATS
Number of homes sold
Crawford County
Jan.-Sept. 2010:  397
Jan.-Sept. 2009:  449
-11.58%

Franklin County
Jan.-Sept. 2010: 65
Jan.-Sept. 2009: 57
14.04%

Sebastian County
Jan.-Sept. 2010:  940
Jan.-Sept. 2009:  957
-1.78%

Value of homes sold
Crawford County
Jan.-Sept. 2010:  $46.851 million
Jan.-Sept. 2009:  $53.364 million
-12.2%

Franklin County
Jan.-Sept. 2010:  $5.258 million
Jan.-Sept. 2009:  $4.860 million
8.2%

Sebastian County
Jan.-Sept. 2010:  $127.137 million
Jan.-Sept. 2009:  $122.929 million
3.42%

Average price of homes sold
Crawford County
Jan.-Sept. 2010:  $118,014
Jan.-Sept. 2009:  $118,851
-0.7%

Franklin County
Jan.-Sept. 2010:  $80,902
Jan.-Sept. 2009:  $85,267
-5.12%

Sebastian County
Jan.-Sept. 2010:  $135,253
Jan.-Sept. 2009:  $128,453
5.29%

The top five Arkansas counties in terms of number of homes sold during Jan.-Sept. 2010:
Pulaski County (3,216, down 1.26% from 2009)
Benton County (2,489, down 5.36% from 2009)
Washington County (1,590, down 3.17% from 2009)
Saline County (1,128, up 6.02% from 2009)
Craighead County (1,030, up 0.59% from 2009)